UK supermarket retailer Sainsbury's is to source all of its Fairtrade cotton from a cooperative supplier in Gujarat, in what is thought to be the first deal of its kind.

The retailer has committed to buying a year's worth of cotton during the harvest period. This will, in turn, give the farmers a guaranteed annual income and allow them to plan how they use their money.

Sainsbury's will also provide advance payments of the Fairtrade premiums, which can be used immediately for community projects.

“Sainsbury's is the largest consumer of Fairtrade cotton from our projects in Gujarat,” explains Ninad Gupte, from the project executive body Agrocel.

“Cotton prices are very unstable, so guaranteeing our farmers a minimum price and pre-financing the Fairtrade social premium offers security that has not been possible in the past.

“Through this initiative, our farmers cooperative body has been able to improve conditions by investing in projects like providing clean drinking water and health check ups.”

Around 1,200 small and marginal farmers based in Gujarat will benefit from the initiative.

“Clothing is a major feature of Sainsbury's Fairtrade offer and we are proud to be supporting cotton farmers in a way which has not been seen before,” notes Liz Jarman, Sainsbury's head of Fairtrade.

The retailer sells an average of 250 Fairtrade T-shirts an hour, which means a total Fairtrade premium of $250,000 per year to benefit cotton farmers in Gujarat.

Sainsbury's, which claims to be the world's largest retailer of Fairtrade products, today (14 February) said its sales of Fairtrade products jumped by 27% over the past year.